NEW VAT RATE TO BE CARRIED OUT IN PHASES – PANEL
The Chairman of the Presidential Tax and Fiscal Policy Reforms Committee, Taiwo Oyedele, announced that the proposed increase in the Value Added Tax (VAT) rate from 7.5% to 10% will be implemented gradually. Speaking at a public consultation in Abuja, Oyedele explained that the phased implementation aims to avoid significant revenue drops and mitigate sudden price increases.
Key points include:
- The VAT revenue-sharing formula will be adjusted: states will receive 55%, local governments 35%, and the federal government 10%.
- Company Income Tax will be reduced from 30% to 25% in phases by 2026.
- Food, education, medical services, and accommodation will be exempt from VAT to reduce inflation impacts.
- The committee's recommendations also include enhanced tax compliance measures and consolidating various taxes for simplicity.
The new VAT rate and other tax reforms are designed to improve planning and revenue stability while addressing inflation and compliance issues.
The Chairman of the Presidential Tax and Fiscal Policy Reforms Committee, Taiwo Oyedele, announced that the proposed increase in the Value Added Tax (VAT) rate from 7.5% to 10% will be implemented gradually. Speaking at a public consultation in Abuja, Oyedele explained that the phased implementation aims to avoid significant revenue drops and mitigate sudden price increases.
Key points include:
- The VAT revenue-sharing formula will be adjusted: states will receive 55%, local governments 35%, and the federal government 10%.
- Company Income Tax will be reduced from 30% to 25% in phases by 2026.
- Food, education, medical services, and accommodation will be exempt from VAT to reduce inflation impacts.
- The committee's recommendations also include enhanced tax compliance measures and consolidating various taxes for simplicity.
The new VAT rate and other tax reforms are designed to improve planning and revenue stability while addressing inflation and compliance issues.